More than $20 million in stimulus recovery money has been released for American Samoa after the local government signed the appropriate agreement with their federal counterpart.

Pat Galeai, who heads the American Samoa Recovery and Reinvestment Office, made the revelation when he appeared late yesterday morning during a meeting with both senators and House members at the Senate chambers.

Senate President Gaoteote Tofau Palaie told lawmakers that yesterday’s gathering was an “informal briefing” on the latest update of the status of America Samoa’s share from the American Recovery and Reinvestment Act (ARRA), better known as the stimulus bill.

Gaoteote said the original plan was for the Fono leadership to meet with Galeai, but he and House Speaker Savali Talavou Ale later opted to hold an informal briefing to allow lawmakers to receive the actual information from Galeai.

Lawmakers were then given copies of the one-page information sheet which shows about 35 program categories in which American Samoa is so far expected to receive ARRA funding. The information is as of May 21, 2009 and the funding levels are “preliminary estimates” based on currently available data.

According to the sheet, funding levels based on new data may result in significant changes from the preliminary estimates. It shows that American Samoa is “projected” to receive $157.10 million and that $26.3 million ($26,306,141) is “released”.

Galeai described “released” as the territorial government having signed the funding agreement with the federal grantor and the money is ready or has already been released to the territory. He also told lawmakers the stimulus money is separate from the annual allocation the local government receives from its federal grantors.

“RELEASED” FUNDS LIST

As noted previously by Samoa News, the highest funds to be released are $7.1 million for Pell Grants from the U.S. Department of Education for students at the American Samoa Community College.

Also released is a little over $6 million for the local Department of Education under five U.S. Department of Education grant programs. Galeai told lawmakers that this is only a percentage of the estimated total grant funding and the release of the funds is based on the ASDOE plan for 2008.

Before the rest of USDOE stimulus funds are released, the ASDOE has to submit a new plan, he added.

American Samoa is also estimated to receive $67 million in the USDOE State Fiscal Stabilization Fund but it is supposed to go to the Governor’s Office for administration, according to Galeai’s information sheet.

Other newly released funds are as follows: $269,887 for the Senior Service Employment Program and $60,625 for the senior nutrition programs, both administered by the Territorial Administration on Aging (TAOA).

The rest of the release grants listed were previously reported by Samoa News.

FONO BRIEFING

Rep. Taotasi Archie Soliai told Galeai the gravest concern to him and his colleagues is the how the money will be spent and will it be spent in accordance with federal guidelines, because any misspending will result in American Samoa having to repay the money.

Soliai said accountability and transparency in stimulus spending is a priority.

Galeai said the local stimulus office was created based on all provisions of the ARRA to ensure American Samoa meets all federal mandates and guidelines in managing and using stimulus money.

He said the office has also “installed numerous safeguards” and every dollar routed through the office will be closely monitored to ensure full compliance. He also said there will be onsite inspection of all projects funded with stimulus money, adding the office has put together a full compliance policy.

“The governor is very concerned that every dollar is spent responsibly and... very prudently,” Galeai told lawmakers. “We share your concern as well.”

Soliai said, “this is an issue that needs to be addressed” fully and reiterated any misspending would fall back on the government to repay.

Galeai said the federal Office of Budget and Management and the Government Accountability Office have not yet issued the final compliance document, which all states and territories must follow. He expects the final document to be issued in June.

He also pointed out that his office will hold accountability sessions with all local recipients of stimulus money and this includes ASG departments/offices, semi-autonomous agencies and the private sector.

Sen. Liufau Sonoma asked if there are any stimulus funds available to the Fono, because the list provided by Galeai does not have any indication the Legislature is benefiting from at least some money.

Gaoteote said that this is one of the main reason’s Galeai was called — to find out if there is money for the Fono. He said one of the major Fono projects pending is to print an updated version of the American Samoa Code Annotated, the law book.

Galeai acknowledged there are no specific funds for the Fono, but noted that 18% of the State Stabilization Fund is allowed to be used for other governmental purpose which could included the Legislative Branch.

Rep. Vaitoa Hans Langkilde led the line of questions on how the stimulus money can help American Samoa with the pending closure of COS Samoa Packing at the end of September this year.

Gov. Togiola Tulafono had told reporters on May 1 that there is no specific stimulus provision that allows the use of funds to assist laid off workers, except for (maybe) retraining these workers. Galeai gave a similar reply to Vaitoa’s question.

Vaitoa also wanted to know an estimated number of new jobs to be created by the stimulus money, to which Galeai said “we’re still working on it.” Galeai also said it’s difficult to make the determination at this time and additional clarification is needed from the federal government.

He said the formula used by ASG, prior to the Samoa Packing closure announcement, was that every $92,000 of stimulus money  should equate to one job, if such a job is for one year.

Galeai said much of this information is still being gathered and the federal government has been made aware of the situation faced by the territory due to the Samoa Packing’s closure.